This deal comes shortly after Generation Investment Management and Canada Pension Plan Investment Board (CPP Investments) increased their investment in Octopus, with Generation securing additional backing from pension funds in the USA and Australia, including Aware Super.

Both deals value the global energy and technology group at $9 billion (£7.2 billion) – a 15% increase from Octopus' last major funding round in December 2023.

Galvanize, a San Francisco-based climate investment firm chaired by Katie Hall and Tom Steyer, is injecting capital from its $1 billion 'Innovation + Expansion Fund' to further fuel Octopus Energy's North American expansion.

Lightrock, a London-headquartered global investment platform dedicated to sustainable development, will support Octopus' growth in Europe and globally. With a strong presence across Europe, Asia, and Latin America, Lightrock manages capital across public and private markets, with a significant portion focused on climate innovation.

Greg Jackson, Founder of Octopus Energy Group, said: “I’m thrilled to welcome Galvanize and Lightrock – backed by some of the world’s most successful investors with incredible track records.

“Their climate-focused investment is a powerful catalyst for our global expansion and will allow us to keep up the momentum to further drive our growth across North America, Europe and into emerging markets.

“We share a mission to accelerate the clean energy transition through smarter, more sustainable systems worldwide. With their support, we’ll increase our global impact, ramp up innovation and scale our vision for reshaping the energy landscape globally.”

Veery Maxwell, Co-Head of Innovation + Expansion at Galvanize, said: “In order to decarbonise, increased system optimisation and flexibility services for the power sector are critical, particularly as the industry grapples with escalating load growth and distributed generation.

“We believe Octopus’ capabilities are distinctly suited to support power market participants across the energy value chain and are looking forward to working with its leadership to accelerate growth across North America and beyond.”

Nigel McCleave, Partner at Lightrock, said: “It is remarkable that in less than a decade since founding, Octopus has become the UK’s largest provider of home electricity – a testament to its fair treatment of customers, pioneering technology, and transformation of the consumer energy experience.

“However, this feels like just the beginning; Octopus has the potential to transform so much more of the energy value chain for the better.

“The energy transition will require companies like Octopus to continue their trajectory of success, and we are excited to partner with a European leader that is not only succeeding, but which is already establishing itself as a truly meaningful company on the global stage.” 

Octopus is a global energy and technology company that aims to drive the affordable, green energy system of the future through its retail brand, its investments in renewables and its proprietary technology platform, Kraken.

Kraken has become the fastest growing energy software globally. It recently announced signing a multi-year contract with Canadian Saint John Energy to license Kraken’s demand flexibility solution and end-to-end customer service platform.

As Kraken’s first partner in the North American energy market to license its customer platform, SJE will be able to continue its long history of innovation by using Kraken to offer cutting-edge solutions that deliver customer value while also supporting a decentralised, green grid.

The platform also greatly reduces costs for suppliers and improves customer service levels. It is now contracted to serve over 54 million energy accounts across the world and manage over 38 GW across 180,000 green energy assets in 12 countries.

In the UK, Octopus has been “Which? Recommended” for an unprecedented seven years in a row. The company continues to top TrustPilot ratings for energy suppliers and has won multiple awards, including being one of TIME Magazine’s ‘100 Most Influential Companies’.